Senior Trader Daily Update 14 September 2017

Good morning everyone.
 
Range trading / consolidation was seen in gold for much of the Far Eastern and European sessions on Wednesday but the big move came during US trading when the wick was lit under the beleaguered Greenback (see attached USD Index chart - Daily 2 Years) and consequently gold and silver in USD terms were kicked lower.
 
The catalyst for the US Dollar move, was news filtering out from Administration officials via various outlets that a target date of September 25th had been set to lay out details pertaining to one of President Trump’s key platforms - tax reform.
 
Newswires carried the following comments made to the Fox News network by the Director of the Office of Management and Budget, (Republican) Mick Mulvaney:
 
Revenue neutrality `not on the top of our list'
Can't balance U.S. budget long-term on current growth
Trump's frustrated with slow pace of Washington on tax
Trump `adamant' about getting corporate rate to 15%
 
The September 25th target date was further validated by House Speaker Paul Ryan with newswires noting:
 
Ryan: Outline of tax plan will be released week of Sept. 25
Ryan says confident Trump to push for conservative tax reform
 
The House Speaker doesn’t believe a 15% corporate tax rate is achievable, instead aiming for 22.5%.
 
Adding further credence to this major policy news is the perception that the US President appears to be taking a more bipartisan approach to delivering his agenda, having met with Congressional leaders on Tuesday evening, which included three Democrat Senators.
 
The metals saw a small bounce from the lows late in the session, apparently on news that Special Prosecutor Robert Mueller (who is investigating “Russian influence” on the 2016 Presidential elections), intended to turn his focus to social media in efforts to gather evidence for his investigation. The fact that the Special Prosecutor has moved in this direction, should at least give pause for thought as to what an utter travesty the entire process has apparently become.
 
Technically, XAU/AUD is finding good support on dips back towards the 21 Day moving average and an eventual clearing of resistance at AUD 1686.50 (the 76.4% Fibonacci retracement of the 1728 to 1552.50 move) remains favoured, which would then open the way to a move to the June 6th high at AUD 1728.00 to complete a technical “rounding bottom” pattern.
 
XAU/USD continues its trek towards the 21 Day moving average and the bottom of its uptrend channel between USD 1304 and 1314. Targets at USD 1368 (August 2nd high) and USD 1375.50 (double top from July 6th & July 11th 2016) remain “in play”.
 
Good luck.
 
Regards,
Andre